Bai Salam (بیع سلم)

Bai’ al-Salam is an Islamic sale contract where the buyer pays the full price in advance for goods that will be delivered at a later date. It is commonly used for agricultural products, manufactured goods, and commodities. With this, the farmers who are poor and do not have the financial means to cultivate their lands are provided with the capital to do so. In this, the buyer is called Rabb As-Salam (رب السلام), the seller Muslam Ilaih (مسلم الیہ), the price is Ra’s Al-Mal (رأس المال) and the purchased commodity is termed as Muslam Fih (مسلم فیہ).